Franchise Jargon Dictionary: The Terms You Need to Know
Do you want to walk the walk, but don’t know how to talk the talk yet? If you want to learn the franchising lingo you’ve certainly come to the right resource! Floor Coverings International’s team of industry experts has helped plenty of investors that are uninformed about this style of business go from novice to natural. Let’s take a look at some of the most commonly used franchising terms that can get you off the ground and started toward your goal of learning how to open a flooring franchise.
- Franchisee: It’s pretty simple — the investor, or location business owner, would be properly labeled as a ‘franchisee’. A franchisee is an individual who invests in a proven brand in order to benefit from its established model or existing marketing strategies. By joining a team as a franchisee, you are able to get a leg up on the competition and don’t have to start your business without brand recognition — the franchisee is an extension of that larger brand.
- Franchisor: If the investor is the franchisee, then the brand or company they invest in must be the franchisor. To use Floor Coverings International as an example, the franchisees who invest in our model will receive extensive franchisor support that takes you along step by step to learn how to open a flooring franchise. The role of the franchisor in this relationship is to provide industry expertise and a well-known brand name.
- Franchise Fee: The franchise fee is the golden ticket of franchising that separates this style of business from the rest. It is a one-time payment that covers the usage of the franchisor’s brand name and any training or ongoing franchisor support given to the franchisee. By making this initial investment you will be placed straight into a model that has established and evolving brand awareness. We provide our franchisees with in-depth training and support to ensure that they are always prepared to provide our standard for high-quality customer care and service. For potential investors in a Floor Coverings International franchise, the franchise fee is what separates your new business from the competition right out of the gate. Our team of franchising experts have worked on crafting this model for decades. In this time, we have built quite a reputation to bring top-quality customer satisfaction with each of our projects. By paying our franchise fee, you’ll benefit from our strong reputation and business model.
- Franchise Disclosure Document (FDD): The Franchise Disclosure Document is the key to anything and everything you would like to know about your franchisor pre-sale. It is a legal document that contains information separated into sections that each cover a specific topic of the experience. If you have a question about what Floor Coverings International will do to teach you how to open a flooring franchise, the FDD will have the answer. If you have a question about the costs to open your location, the FDD will most likely help. Once given the FDD, the franchisee has the chance to educate themselves on the ins-and-outs of the company they will be investing in. You will have plenty of time to review this document to ensure you are making an educated decision and our franchising support team will be there to answer any of your questions.
Want to learn more about franchising or see what we do to help educate franchisees on flooring? Feel free to contact us today!